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Kobe Steel and JFE Form Welding Wire Joint Venture

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Following the formation of an alliance between Kobe Steel and JFE Steel to improve their welding business, the companies have decided to shift their welding wire production to a new joint venture. The joint venture will be established on October 1.

Kobe Steel will be the majority shareholder in the joint venture. It will combine the production from Kobe’s Fukuchiyama plant and JFE’s Kurashiki plant. While production will be combined, each company will continue to market its own products.

Through the establishment of the joint venture they expect to be able to save costs through reduced operating costs, consolidation of production and lower procurement costs.

For more information on welding, click here.

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